Money management for kids has to be taught in simple, entertaining and memorable ways.
When children first begin to learn about finance, they might not understand the concepts being explained to them. That’s why practical lessons are needed to illustrate these concepts. A good start is to get a bank account for kids, or to invest in a prepaid debit card for kids. The sooner they familiarize themselves with these tools, the better off they’ll be.
All in all, you should be teaching your child through example, by directly involving them your daily financial expeditions. Money management for kids however, needs to be fun – which is where these 6 great activities come in. Teach your kids with these techniques.
#1: The Difference Between Needs and Wants
Teaching kids about money includes showing them the difference between needs and wants early on. Get your kids to create a chart of items, and have them sort these items into needs and wants. Each time, explain why the item is in the appropriate column.
#2: Online Tracking and Money Management For Kids
Enroll your child in an online allowance program, which will track their habits and lead to better money management for kids. Your kids will be able to use this program as a basis for sound financial decision-making.
#3: Set Up a Lemonade Stand
The fast way to teach your kids about their family allowance, is to get them to run a ‘business’ of their own. They’ll love seeing how money can be earned, and you can go through the mechanics of investing, earning and spending with them.
#4: Looking For The Better Deal
Teach money management for kids by playing the ‘better deal’ game with them. If you’re going to buy something fairly large, have them search for the most affordable option online. If they can find you the item for a saving, give them a financial reward.
#5: Money Management For Kids and Competition
If you have two children, you can make saving a fun game. Money management for kids works well when there’s a competition between siblings to see who can save the most.
#6: Use Board Games, Books and Printables To Teach
If you want to teach money management for kids, then use accompaniments, like fun quizzes, finance based board games, like monopoly, and read them kids finance books.
Your child’s financial literacy depends on your ability to create fun activities that teach money management for kids. These activities need to hold their interest and be educational. Keep an eye on their spending habits and correct any mistakes as they progress.
Involve your child in the learning process, and get feedback from them along the way. Often money management for kids can be improved if the child has a say in the games they play. Keeping it fresh and fun will go a long way towards their overall education.
Use these 6 excellent activities to educate your children about money management for kids today – and they’ll be money savvy when they reach adulthood!